United Reef Limited
TSX VENTURE : URP

United Reef Limited

January 24, 2011 09:15 ET

United Reef Mobilizes Drilling Program on Nixon Bartleman Property, West Timmins Area

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2011) - United Reef Limited (TSX VENTURE:URP) ("United Reef or the Company") is pleased to announce that it is mobilizing an initial 10 hole drilling program during the week of January 24, 2011 on the Nixon Bartleman gold property. The Company has contracted Cabo Drilling (Ontario) Corp. of Kirkland Lake for drilling services. United Reef has an option to acquire a 70% interest in the nineteen contiguous mining claims (4 patented and 15 unpatented claims) making up the Nixon-Bartleman property. The claims cover a total area of approximately 313 ha (773 acres) in Keefer and Hillary Townships. The program will test two distinct types of gold mineralization on the property.

The Nixon Bartleman property covers an area of favourable geology lying to the southwest of Lake Shore Gold Corp.'s project area in the West Timmins gold camp. The main gold occurrences on the property are centered approximately 22 km southwest of Lake Shore's West Timmins Mine and 10 km from their west claim boundary. The Porcupine Destor Fault ("PDF") strikes through the centre of the property from northeast to southwest and the property is also believed to host splays from the PDF and one or more cross-cutting faults. These structures are often favourable hosts for gold mineralization in this type of geological environment. 

There are at least 5 known gold occurrences which have been identified on the property and the most explored of these is a prospect referred to as the Nixon Bartleman showing. Historic exploration on this prospect has included stripping, channel sampling and a limited amount of diamond drilling. Channel sampling has identified a 60 metre long zone between 1 and 6 metres wide with grades averaging 4.4 g/t Au and 14 g/t Ag with individual 1.0 metre long channel samples ranging from 0.83 to 18.69 g/t Au and 0.37 to 47.6 g/t Ag. The best intersection from the 6 known drill holes that have tested this zone was reported as 13.5 g/t Au and 137 g/t Ag over 3.0 m at a depth of 100 metres below surface.

The gold mineralization on the Nixon Bartleman prospect is associated with quartz veins localized within a sheared, altered mafic unit. The veining is folded in both horizontal and vertical orientation and is believed to have resulted in the development of mineralized lenses that plunge either shallowly or in a near vertical direction. Nine shallow holes on three closely-spaced fences are planned in the current program to determine the continuity and trend of the mineralized structure as well as test the grade of the mineralization. Once this trend is established, a drilling program consisting of deeper holes can be planned with a much higher probability of success.

Porphyry Target

Previous drilling on the property has intersected a quartz porphyry intrusion with indications of considerable size potential located beneath overburden cover in the north-central part of the property. The silicified margins of the intrusion were found to contain elevated gold mineralization (values up to 0.39 g/t Au). This type of structure has potential to host large tonnage, low-grade gold mineralization. One drill hole in the current program is also planned to test this structure along strike to the northeast of the known intrusion where it is projected to intersect favourable complex folded stratigraphy.

Most of the known gold deposits in the Timmins camp are spatially related to the Porcupine-Destor Deformation Zone, the major regional fault structure. The deposits occur in Archean aged meta-volcanic rocks although they are typically accompanied by metasedimentary rocks, quartz-feldspar porphyritic and ultramafic intrusive rocks. Almost all known deposits of this type are hosted within shear zones and are accompanied by quartz-carbonate alteration. The West Timmins area has not been well explored to date. Based on our data review and observations made during property visits the Nixon Bartleman property exhibits good exploration potential based on this model.

United Reef has retained Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo. of Sears, Barry & Associates to prepare a compilation of historic exploration work carried out on the property, to develop an exploration strategy for the project and to supervise the drilling program. Mr. Sears has reviewed the technical content of this Press Release.

The Company is continuing to advance its strategy as a Canadian focused gold explorer as we plan for an active year ahead of exploration on our gold projects. For further information about United Reef please visit our website at www.unitedreef.com.

Shares issued: 88,909,980

Fully diluted: 105,623,980

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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